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Zomato Q3 Results: Its quick commerce Blinkit has recorded a loss of Rs 30 crore.
Zomato has declared its Q3 financial results.
Zomato Q3 Results: Zomato on Monday posted a 57.24 per cent decline in its net profit to Rs 59 crore for the December 2024 quarter (Q3 FY25), according to a regulatory filing. Following this, its shares declined by 7 per cent intra-day and settled at Rs 240.95 apiece, which is 3.14 per cent lower as compared to the previous day.
However, the food delivery platform’s revenue during October-December 2024 rose 64 per cent to Rs 5,405 crore, against Rs 3,288 in the year-ago period.
Importantly, its quick commerce Blinkit, which kept Zomato profitable in the previous quarters, has recorded an EBIT loss of Rs 30 crore. EBIT stands for earning before interest and tax.
In a positive development, Zomato’s food delivery business EBIT has jumped 26 per cent YoY.
According to a regulatory filing on Monday, Zomato told investors, “The losses in our quick commerce business this quarter are largely on account of pulling forward the growth investments in the business that we would have otherwise made in a staggered manner over the next few quarters. As of now, it seems like we will get to our target of 2,000 stores by Dec 2025, much earlier than our previous guidance of Dec 2026.”
While the company did make improvements in profitability on a yearly basis – consolidated Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 128 percent YoY to Rs 285 crore in Q3FY25 – on the back of improvements in food delivery, its margins suffered on a sequential basis due to investments made in expanding its quick commerce store network.
Its consolidated Adjusted EBITDA declined by 14 percent (~Rs 45 crore) compared to the previous quarter. In fact, Blinkit’s quarterly losses increased by Rs 95 crore.
Total expenses for the Gurugram-based firm increased to Rs 5,533 crore in the quarter ended December, up from Rs 3,383 crore a year ago and Rs 4,783 crore a quarter ago.
Its cash balance increased to Rs 19,235 crore as at the end of the quarter, largely on account of the net proceeds of its recent Rs 8,446 crore fundraise via a qualified institutional placement (QIP).
